-Suppose a Factory Can Be Designed to Produce Either Trucks

question 54

Essay

-Suppose a factory can be designed to produce either trucks or cars. The figure above shows the marginal cost and marginal benefit of producing trucks in terms of the forgone cars.
a) What is the marginal benefit of the 25th truck?
b) What is the marginal cost of the 25th truck?
c) Should the 25th truck be produced? Why or why not.
d) What is the marginal benefit of the 75th truck?
e) What is the marginal cost of the 75th truck?
f) Should the 75th truck be produced? Why or why not?
g) What is the allocatively efficient quantity of trucks?

Understand the mechanisms behind oceanic and atmospheric phenomena influencing ecology.

Recognize the consequences of human activities on climate patterns and ecological zones.

Understand different hypotheses explaining patterns of species diversity based on latitude.

Comprehend the Wilson-MacArthur theory of island biogeography and its implications for species-area relationships.

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Definitions:

Capabilities

The qualities or capacities that a person or entity possesses, enabling them to perform certain activities or functions.

Future Potential

The possible achievements or developments that an individual or entity can accomplish in the future.

Economically Disadvantaged

Refers to individuals or groups who have less financial resources and opportunities compared to the average in a society.

Standardized Intelligence Tests

Tests designed to measure intelligence through a set of standardized tasks and problems, providing a quantitative assessment of an individual's intellectual capabilities.